BSM 200 Lecture Notes - Lecture 21: Formal System, Product Market, Retained Earnings
Document Summary
Think about business in different stages because : The market continues to change > reaching diff demographics. > suppliers, gov"t, investors, larger firms (who want ur business) There is a former disengagement in the second step where the owner decides if they want to grow their business or sell it. What do companies like to think of itself in the growth phase: They like the growth phase: management is easy, innovative/ new. When you are in the growth phase you are being innovative. Relevance to the customers and to themselves. Networking < relevance to market + internal. If you aren"t being innovative you will be copied and if you are copied you won"t exist long. Rather, a company would want to constantly change/ redefine the market: reinvesting past profits. The growth phase allows companies to stay relevant in the market, they always want to stay in this phase not the mature phase.